New distribution center in Beijing adds to Chengdu and Shanghai facilities to reach B2B and B2C customers

UPS (NYSE: UPS) today announced the opening of its new contract logistics distribution facility in Beijing. The 6,500 square meters of non-bonded warehouse space located 19 kilometers from Beijing Capital International Airport serves growing demand in China and is capable of servicing contract logistics orders with four-hour delivery within the metropolitan Beijing area and next-business-day orders for major cities throughout China.

"The Beijing facility is the latest addition to UPS's portfolio of contract logistics facilities nationwide, which strengthens our integrated China network," said Craig Foster, UPS Asia Pacific senior vice president of supply chain and healthcare logistics. "Our warehouses throughout China, including the new facilities in Beijing, Shanghai and Chengdu, enable us to effectively support national and regional order fulfillment and give customers better warehousing and distribution access to developing cities throughout the country."

Additionally, UPS has expanded its post-sales services in China. This network now provides same-day critical parts delivery within the metro area in 87 cities throughout China.

The opening of the Beijing facility follows closely after the opening of similar UPS distribution centers in Chengdu and Shanghai in 2013. Together, the centers support growing industries in China, including high-tech, industrial manufacturing, aerospace and retail. Capabilities of these facilities include order fulfillment, inventory management, kitting, packaging and other specialized value-added services.

According to market research firm Transport Intelligence, China is expected to overtake Japan in becoming the largest contract logistics market in the Asia Pacific region by 2016, driven by rising domestic consumption from a growing middle class and the gradual move of Chinese businesses up the value chain.

"The opening of the Beijing facility is testament to UPS's long-term commitment to China. Chinese customers have greater access to the growing market, backed by a strong and extensive integrated network," said Richard Loi, president of UPS China. "We will continue to leverage our global logistics expertise and expand our offerings in China to meet our customers' demands for top-notch logistics services."

In addition to opening the new facilities, UPS has also developed its gateways in central and western China with flights connecting Chengdu and Zhengzhou to the extensive UPS global network. With dedicated healthcare facilities in Hangzhou and Shanghai, UPS has further enhanced its capabilities in serving the needs of healthcare customers.